Development Banks – not only important in times of Covid-19.

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From an economic point of view, development banks correct market failures. This function manifests itself, for example, in the fact that insufficient financing of parts of the economy, such as small and medium-sized enterprises, is mitigated with debt or equity from state development banks. Market failure especially occurs with innovations. High uncertainties about the success of new products and processes often prevent private start-up financing. Under these circumstances, the state has the role of reducing the risk of private financing or of developing new markets through its own demand power and through public procurement. Typically, public development banks »do the job« and fund measures that overcome market failures. In view of the economic importance of development banks, it is surprising how little related scientific research or descriptions of their activities can be found in specialist journals. With these two special issues, we help narrow this gap. The two volumes are structured in such a way that the analysis focuses on development banks in Germany in the first volume. In this second volume, based on some fundamental studies of development banks, the focus is decidedly on international activities and institutions. In both volumes, essays with theoretical considerations are accompanied by essays that focus on practical implementation and experience. This unique collection of articles deepens our understanding of the role of development banks as weapons against economic downturns, as tools for fighting the impact of the Covid-19 pandemic, and as promoters of ecological, social, and competitive economies.